Fixed Income - Fixed Income Section 1

Avatto > > CFA Level 1 > > PRACTICE QUESTIONS > > Fixed Income > > Fixed Income Section 1

71. Which of the following statements about LTV is least accurate?

A
LTV is the ratio of the mortgage loan amount to the property’s purchase price.
B
Lower the LTV, the more likely the borrower is to default.
C
Lower the LTV, the more protection the lender has for recovering the amount loaned if the borrower defaults.

Answer
Comment
Array

Option : B
Explanation : Lower the LTV, the less likely the borrower is to default.

You must be logged in to post a comment.

You must be logged in to post a comment.

Related Quiz.
Fixed Income Section 1

Forgot your password?

I agree with the Terms.